With respect to distributorships,the existence of a genuine selling opportunity and a realistic opportunity to expand are relevant to which of the following?

Question

Quizplus · Accepted Answer

The legality of a multi-level marketing plan is determined by whether it meets certain legal requirements, and one of these requirements is that there must be a genuine selling opportunity and a realistic opportunity to expand. Thus, the existence of such opportunities is relevant to the legality of a multi-level marketing plan.

Answer: C 
 Pyramid selling schemes are illegal in many countries, and they are characterized by a focus on recruiting new participants rather than selling products or services. The existence of a genuine selling opportunity and a realistic opportunity to expand is relevant to the distinction between a pyramid selling scheme and a legitimate multi-level marketing plan.

Answer: D 
 Timely disclosure of earnings refers to the requirement that distributors must be provided with accurate and complete information about the earnings potential of the distributorship. The existence of a genuine selling opportunity and a realistic opportunity to expand is relevant to this disclosure, as it impacts the potential earnings of the distributorship.

Therefore, options B, C, and D are all relevant to the existence of a genuine selling opportunity and a realistic opportunity to expand in distributorships.

With Respect to Distributorships,the Existence of a Genuine Selling Opportunity